Russia Modified Core Inflation: excluding the most volatile components

In order to derive an modified core inflation by excluding the most volatile components we measure the volatility as the standard deviation of the monthly inflation of certain CPI components in the moving 2-year window. The most frequently excluded (from the calculation) components of inflation are eggs, sugar, vegetables and fruit, cheese, pasta and cereals, petrol, communications services. The Research and Forecasting Department calculates trend inflation estimates and modified core inflation. CPI data source: Rosstat. For details of methodology, see Deryugina et al (2015). Evaluating the underlying inflation measures for Russia. Working Paper Series, №4, March 2015.